Consultation Paper High level description, Nordic CSD Corporate ...

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NCSD securities memorandum account Account: 55 666 7777 8888 9 Owner: Nnnn Nnnnnn SE9000000681 100 000 NO2258774123 16 000 FI0001002233 10 000 DK0005012589 20 450 DK0022587741 5 000 DK0025887890 17 850 CSD accounts Denmark Finland Norway Sweden 20 450 17 850 5 000 10 100 000 000 16 000 100 000 Figure2: The NCSD securities memorandum account and corresponding local CSD accounts. The illustration above describes holdings on four different CSD accounts under different legislations which are reflected on the NCSD ‘securities memorandum account’. Each specific security is registered on a CSD account governed by the legislation of the primary CSD of that security. For example, the holdings in the Danish securities are registered on a CSD account governed by Danish legislation. Dependencies and implications The above description of a NCSD ‘securities memorandum account’ corresponds directly to the settlement structure and the proposals regarding standardised settlement process. Either the CSD must provide some services where Corporate Action related payments are exchanged to the preferred currency of the account holders or the Account Operators would be required to have routines in place for Corporate Action event occurring in securities which are held on any of their administered accounts. Hence, although participants can instruct any currency for the settlement of a specific security, participants may be required to have page 18(62)
outines in place for the currency in which Corporate Actions occurs in that security. For example, a Norwegian security may be settled in Euro but the Account Operator would have to have payment routines in Norwegian kronor for Corporate Action related payments. 4.1.2 Securities account structure and Corporate Actions 4.1.2.1 Securities memorandum account As stated above, each security should be connected to a primary CSD and the proposed structure implies that the CSD accounts are governed by the primary CSD. This will also be valid for non-Nordic securities as they will be connected to a primary CSD within NCSD as well. From an Issuer perspective, the benefit of the securities account structure is that shareholder register and other registers of holders would include all the holdings on the securities memorandum accounts directly. In registers of holders, the holdings will be presented on an investor level, i.e. an investor who has two securities memorandum accounts will be presented as one in the register. All the Nordic holdings would be in the primary CSD and as such on the register of holders and make depository receipts arrangements between the Nordic countries unnecessary. Hence, an Issuer with a broad shareholder base in the Nordic region will only receive one shareholder list covering all the Nordic countries. This will enhance the communication with the shareholders in the Nordic region. There should be a possibility for the investors to have several securities memorandum accounts with one or several Account Operators. For various reasons the investors may have a need to segregate securities holdings into several accounts. The investors would still have a choice of how many ‘securities memorandum accounts’ they would hold i.e. the investors may split holdings in one country into several accounts or segregate holdings in different countries into different ‘securities memorandum accounts’. NCSD would not force all holdings into one ‘securities memorandum account’. Proposal [CA 1] An investor should be able to have several securities memorandum accounts with one or several Account Operators. page 19(62)
Page 1 and 2: NCSD Title Corporate Action Consult
Page 3 and 4: 6.1 DEFINITIONS AND ABBREVIATIONS .
Page 5 and 6: Nordic Corporate Action model and t
Page 7 and 8: Participant roles have been covered
Page 9 and 10: 1.4 Guidelines for reading and resp
Page 11 and 12: 2 Executive summary The Nordic Sing
Page 13 and 14: 3 International initiatives and sta
Page 15 and 16: ECSDA Corporate Action standards an
Page 17: 4.1.1 Securities account structure
Page 21 and 22: settlement of a specific security,
Page 23 and 24: participants would need local membe
Page 25 and 26: Investor 1 Investor 2 Issuer Issuin
Page 27 and 28: Figure 5: Access areas for the Issu
Page 29 and 30: 4.3 Securities Database Background,
Page 31 and 32: We aim to achieve a harmonised busi
Page 33 and 34: 5.3 Definition of key dates and ent
Page 35 and 36: that the relationship, especially r
Page 37 and 38: database. This would among other th
Page 39 and 40: Action related notifications from N
Page 41 and 42: Proposal [CA 22] Issuing Agents sho
Page 43 and 44: 5.5.2 Mandatory distributions witho
Page 45 and 46: choose from two or several options
Page 47 and 48: Once the distribution of the rights
Page 49 and 50: The automated market claims functio
Page 51 and 52: Dependencies and implications In or
Page 53 and 54: Proposal [ID: 7C] Check for payment
Page 55 and 56: Dependencies and implications Autom
Page 57 and 58: A consequence of integrating the Co
Page 59 and 60: Interim shares A share that an inve
Page 61 and 62: 6.2 Appendix II - Working Group Par

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